A. Incorrect because issuers predominantly use derivatives to offset or hedge market-based underlying exposures incidental to their commercial operations and financing activities. In contrast, investors use derivatives to replicate a cash market strategy, hedge a fund's value against adverse movements in underlyings, or modify or add exposures using derivatives, which in some cases are unavailable in cash markets. The flexibility to take short positions or to increase or otherwise modify exposure using derivatives beyond cash alternatives is an attractive feature for portfolio managers (i.e., investors). B. Incorrect because in contrast, investors use derivatives to replicate a cash market strategy. C. Correct because issuers predominantly use derivatives to offset or hedge market-based underlying exposures incidental to their commercial operations and financing activities. In contrast, investors use derivatives to replicate a cash market strategy, hedge a fund's value against adverse movements in underlyings, or modify or add exposures using derivatives, which in some cases are unavailable in cash markets.